Autoliv's Aquisition Completed

Stockholm, SWEDEN


STOCKHOLM, Sweden, April 9, 2002 (PRIMEZONE) -- Autoliv Inc.(NYSE:ALV), the worldwide leader in automotive safety, has completed the acquisition of the Restraint Electronics Business of Visteon Corporation (NYSE:VC). The necessary governmental approvals have now been received for this transaction which Autoliv and Visteon agreed to in March.

The operations that Autoliv is acquiring have $150 million in annual sales and 350 employees in North America with over 100 of them in electronic engineering. The employees are located at Visteon's advanced engineering center in Dearborn, Michigan, and at Visteon's electronic manufacturing facility in Markham, Ontario. Autoliv is acquiring the operations in Markham that manufacture electronic control units and sensors for airbags and other automotive safety systems and will lease the corresponding part of the Markham facility. The production of restraint electronics at Visteon's plant in Portugal will be moved to Autoliv's production facilities.

"Outside North America, we have been offering complete restraint systems with electronics for many years, but in North America we haven't had these capabilities, despite the fact that we have more than one third of the U.S. airbag market. With this acquisition, we not only establish a solid presence in the U.S. safety electronics market but also become one of the largest suppliers in the world of these products," declared Autoliv's President and CEO Lars Westerberg.

"This strategic acquisition will not have any impact on Autoliv's earnings this year and is not expected to have any significant effect on our net debt. Within two years we expect it to reach the returns on investments that we have for the rest of the Autoliv group," Autoliv's CEO added.

Autoliv's current sales of safety electronics, which are predominantly in Europe, amount to more than $150 million per year. Autoliv's Electronics Division has manufacturing capabilities in France and Sweden. After the acquisition, Autoliv's sales of safety electronic products will total approximately $325 million annually, corresponding to just above 15% of the fragmented global market for restraint electronics.

This information was brought to you by Waymaker http://www.waymaker.net



        

Contact Data